Hello, I'm a contractor and do work for various estate agents. The agents charge a 20 percent fee, so for example I just invoiced for £100 but get paid £80, how do I show this on my QuickBooks? its basically their commission for giving me work.
It's nice to have you back here in the Community, @BenPage96.
I've got the steps that you need in recording the 20% agent fee on your sales transaction.
You can create a service item for the agent fee and enter it as a negative amount upon creating the invoice. In doing this, make sure that the income account of the item is an expense account since it has been taken out before you receive the income.
Here's how to set this up:
Click on the Gear icon at the top.
Select on Products and Services.
Hit on New.
Choose on Service.
Enter the item name.
From the Incomeaccount section make sure to select an expense account to track your transactions correctly.
Tick on Save and close.
Once done, you can now proceed with creating the invoice and applying the charge.
Here's how to create your invoice:
Click on the + New button.
Select your customer name and other information needed on the invoice.
From the Product/Service box select the item to be used with its amount.
Add a second line for the service item (agent charge) that you've created and enter the 20% amount of the fee as a negative figure.
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